Even as credit conditions have begun to deteriorate globally, the latest IACPM Credit Outlook Survey forecasts even higher defaults and wider credit spreads in the months ahead.
Members of the International Association of Credit Portfolio Managers responding to the latest IACPM Credit Outlook Survey forecast rising credit defaults globally.
Increased defaults will be driven by continued expectations for higher inflation and rising interest rates as well as supply chain issues.
A confluence of higher inflation, rising interest rates, supply chain issues and labor shortages have prompted respondents to the latest IACPM Credit Outlook Survey to forecast wider credit spreads over the next three months.
Survey respondents to the latest IACPM Credit Outlook Survey are modestly less optimistic about future credit conditions.
IACPM recently completed research on Mobilisation of Private Capital in Relation to UN Sustainable Development Goals: Bank Interaction with DFIs.
While the amount of stimulus has been critical in providing an underpinning for businesses, as well as consumers, it also resulted in concern about inflation.